Extraordinary Genius

Chapter 1666: Unremarkable Fu Guangzheng

"Feng Yu, how did you say that the news has not come out?" Fu Guang is anxious.

Feng Yu said that the crude oil price will definitely rise this time, not only because Iran will certainly reduce crude oil, but also because Feng Yu analyzes, the Fed will cut interest rates again.

It seems that the Fed’s interest rate cut has nothing to do with the rise in crude oil, but it actually has a lot to do with it.

When the Fed cuts interest rates, the cost of using the US dollar will be reduced. The US dollar is the world's universal reserve currency. The foreign exchange reserves of all countries in the world basically include the US dollar, which makes the dollar almost as hard as gold.

As the world's universal reserve currency, the US dollar is naturally freely convertible, and the Fed cuts interest rates. So many people will exchange their US dollars for convertible currencies that are not cut interest rates, or other commodities.

What will happen to this situation? That is to sell the US dollar, causing the dollar to depreciate.

This is like the financial turmoil in Asia. The baht and so on are constantly being sold, which is constantly depreciating.

You said that the dollar depreciated, isn’t there a loss in the country?

It is not necessarily true that the US dollar is not a foreign exchange reserve in the country of rice. What is the euro and the yen? Moreover, it can be seen from several interest rate cuts by China. This is a means of stimulating currency circulation and consumption, which can stimulate the domestic economy very well.

Because the country has already seen it at this time, their economic growth has slowed down and there are signs of a recession. As the world's largest economic power, how can we watch other countries grow faster than them? Especially in China, Russia, etc., which they have always wanted to suppress, the economic growth is too fast, which makes them very uneasy.

And in this way, it can also hit countries with a very large dollar foreign exchange reserve. Where is this mainly? The main ones are Asian countries, including China, island countries, etc., which are among the largest countries in the world in terms of US dollar foreign exchange reserves.

The depreciation of the dollar means that their reserves of wealth have depreciated and wealth has evaporated.

This is a means of gaining more than one measure, so don't look at the Fed is not a political axe unit, but it also represents the interests of the country, representing the interests of the investors in the country.

If the Fed cuts interest rates and the US dollar depreciates, what impact will it have on crude oil futures?

Crude oil is linked to the US dollar. All crude oil transactions are measured in US dollars. The fluctuation of crude oil prices is also based on one US cent. If it is linked, what effect?

That is to strengthen the value of the US dollar. Crude oil is the most important energy source in the world. After being linked to the US dollar, the country can pass the US dollar and affect the price of crude oil to a certain extent to ensure their interests. At the same time, it can continue to expand the influence of the US dollar. .

Therefore, the fluctuation of the dollar price has a very important impact on crude oil. The depreciation of the US dollar means that a barrel of crude oil at the same price has actually depreciated, and its purchasing power has dropped.

So how do you ensure that the actual value of crude oil remains the same? Very simple, raising prices.

The original $55/barrel of crude oil rose to $60/barrel, and the purchasing power was not flat.

Feng Yu initially persuaded Fu Rongqi to say that they were cutting crude oil and depreciating the US dollar, so crude oil will inevitably rise in price.

However, the current situation is that only Iran has unilaterally announced the reduction of crude oil production. The other opec member states have not heard anything. Although there is no objection, there is no support.

Moreover, the Fed has not cut interest rates. The US dollar has not continued to depreciate. How can the price of crude oil rise sharply?

He Zhaoji and Soros said that each one took out a billion dollars to raise the price of crude oil, which is actually used to suppress the dollar. Just as they used to suppress the Thai baht, they continued to borrow from the bank and then sold at a low price.

The difference in the price is definitely a loss. The two sides agreed to prepare for the loss of one billion dollars.

But this part of the loss can be earned back through the rise in crude oil prices. Moreover, the depreciation of the US dollar has no too bad influence on the United States. They can raise interest rates at any time through the Fed to reverse this effect. This is also a means of controlling the economy.

Therefore, Soros and the wind and rain consultation team joined forces to suppress the US dollar, and he did not have any psychological burden. Anyway, this is more in line with the interests of the country.

In the second quarter of last year, the Fed came to a rate cut, which really gave the country's domestic economy a great stimulus. At that time, it also caused crude oil to rise to nearly $80/barrel.

Then it slowly fell back to the normal level of 50 to 60 US dollars, also because the Fed kept raising interest rates.

Feng Yu decided that the Fed will cut interest rates again. In fact, no one else believes.

If it is less than a year, it will cut interest rates again. How is this possible?

Feng Yu looked at the anxious Fu Guangzheng: "Let's wait, this news is coming. If Soros did not join, we still have doubts, but Soros has joined, then this will happen."

Among the clients of Quantum Fund, there are many big bankers, and naturally, the Federal Reserve Bank of the Federal Reserve. And Soros’s friends, as well as the Fed’s executive committee, will certainly have news channels in this regard.

Of course, one of the executive members is a friend of Ralph. As for how to make friends, this is not mentioned.

Through these people, we can know that the Fed is indeed planning to cut interest rates again, stimulate the economy, and let people take the money out of the bank.

"But how long do we have to wait?" Fu Guangzheng asked.

Feng Yu took a look at Fu Guangzheng: "Guangzheng, how are you so impatient? Although the price of crude oil has been fluctuating in recent days, but it is also rising in volatility, we still have profits."

"But profits are far less than investing in stocks. If we use these money to stock index futures, we will definitely earn more." Fu Guangzheng retorted.

Professor Liang shook his head: "Light is right, things can't be seen this way. Do you think we need to buy stock index futures before, and then wait for the Fed to cut interest rates and cut crude oil to come out and get back to the best?"

"In that case, the price of crude oil must have risen a lot, and our profit margin will be much less. And there is a very important point, so that we are no longer a weather vane."

"Now we are entering earlier, many investment institutions and hot money are staring at us, taking our operations as the vane. That is to say, we have already affected the price of crude oil to a certain extent."

"The biggest advantage is that when we sell back in the opposite direction, we can also drive others to follow suit, so as to ensure that we get the most profit."

“There is a question of initiative here, which is the most important and can make our risk the lowest.”

Feng Yu suddenly smiled and asked: "Guangzheng, have you borrowed a lot of money?"

... (to be continued.)